On September 1, Patterson Maintenance Company Contracted to Provide Monthly

On September 1, Patterson Maintenance Company contracted to provide monthly maintenance services for the next three months at a rate of $2,400 per month. The client paid Patterson $7,200 on September 1. Assuming Patterson records deferred revenues using the alternative treatment, what would be the entry on September 1?

A) Debit Cash and credit Unearned Revenue for $7,200.
B) No entry is needed until the services are performed.
C) Debit Cash and credit Service Revenue for $7,200.
D) Debit Prepaid Maintenance and credit Cash for $7,200.